Economic Growth and Increasing Housing Price

28 Pages Posted: 9 Jun 2003

See all articles by Charles Ka Yui Leung

Charles Ka Yui Leung

The Chinese University of Hong Kong (CUHK) - Department of Economics

Date Written: May 7, 2003

Abstract

Several cities and countries in Asia and North America experience large increases in the housing prices. We extend Rebelo (1991) to mimic this fact. We show that growth in real housing prices can be resulted as the economic growth persists, even when population growth is zero. Another finding is that the reported increases in housing prices might be underestimated. In particular, the growth rate of a relative price index may converge to zero even when the housing prices in real terms display sustained growth.

Keywords: economic growth, increasing housing prices, economic fundamentals

JEL Classification: D90, G12, O41, R31

Suggested Citation

Leung, Ka Yui Charles, Economic Growth and Increasing Housing Price (May 7, 2003). Available at SSRN: https://ssrn.com/abstract=406100 or http://dx.doi.org/10.2139/ssrn.406100

Ka Yui Charles Leung (Contact Author)

The Chinese University of Hong Kong (CUHK) - Department of Economics ( email )

Shatin, N.T.
Hong Kong
+852-2609-7158 (Phone)
+852-2603-5805 (Fax)

HOME PAGE: http://www.cuhk.edu.hk/eco/staff/kyleung

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